GCG’s Q1 2022 Transportation & Logistics Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- In Q1 2022, most public equities across the Transportation & Logistics industry decreased after a slight rebound in performance the previous quarter. The unexpected war in Ukraine has heightened what was already a volatile situation with supply chain issues around the world. Demand for goods continues to increase, but freight volumes have dropped as cargo has been stuck on ports overseas.
- On a 3-year period ending in March 2022, all sectors within the Transportation & Logistics industry outpaced the S&P 500, which had a 57.1% return. The Trucking sector continues to lead the way, followed by Air & Express Delivery, Third-Party Logistics, and Freight Rail (97.7%, 71.8%, 67.4% and 58.1% respectively).
- The volume of M&A activity in the Transportation & Logistics industry slightly decreased, with 59 deals closed in Q1 2022, compared to 67 during the prior quarter. The average deal value (based on transactions with reported values only) also decreased to the lowest it has been this past year. The decrease in value may signal that buyers are being very selective in who they acquire and are not willing to spend on high-end transportation and logistics companies given the current market conditions.
Click here for the full update.